No deal! Murdoch gives up on Time Warner

Did Rupert Murdoch just surrender?

The famed and feared mogul said Tuesday that he had withdrawn his offer to acquire Time Warner, squelching what could have been the biggest media merger in recent history.

Arguably, shareholders had scuttled it already: 21st Century Fox shares had dropped nearly 10% since the initial bid for Time Warner earlier this summer.

Time Warner CEO Jeff Bewkes had given a firm "no," first privately, then publicly once Murdoch's interest was leaked to the press. Since then, some Fox investors have been worried that Murdoch would come back with a higher offer -- one that was too high.

In a statement, Murdoch cited those two reasons for backing down: Time Warner's refusal "to engage with us" and "the reaction in our share price."

Given Murdoch's penchant for deal-making, however, there was immediate speculation that he might resume his pursuit at a later date, if his share price permits.

Following his withdrawal announcement, Time Warner released a statement thanking stockholders "for their continued support."

"Time Warner's board and management team are committed to enhancing long-term value and we look forward to continuing to deliver substantial and sustainable returns for all stockholders," the company said.

Fox withdraws bid for Time Warner

When Murdoch's interest in the company was first reported, Jeff Bewkes said that the company's own strategic plan would be more valuable to investors than any Fox offer.

Now Bewkes may come under new pressure to prove that.

Murdoch's statement was issued at the same time that The Walt Disney Company(DIS) issued its quarterly earnings. In a televised interview with Bloomberg, the Disney chief executive Bob Iger was asked if he'd have any interest in acquiring part or all of Time Warner.

While he said Time Warner has "some great assets," he said his observation "should not in any way mean that we're looking to acquire them or any part of them."